Why Uranium Is Expected to Continue Its Bullish Run In 2022
FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., July 20, 2022 /PRNewswire/ -- According to Currency.com, in 2021, the price of Uranium reached the highest levels since 2014, driven by numerous external factors. As a key component of nuclear energy, investors continue to bet on increasing demand for uranium as the world looks towards alternative energies. Throughout the year, the uranium spot price rose from around $30 to $42.05 a pound, an increase just shy of 40%. According to Yellow Cake, a company listed on AIM that provides investors with exposure to uranium: "Primary production has consistently fallen below market demand for uranium over recent years and the primary supply deficit reached a new record in 2020." The supply deficit is predicted to continue, despite speculative interest in uranium driven by a strong nuclear energy push. The article discussed forecasts for 2022, 2025 and 2030. It said: "InvestingNews.com suggests: "Constrained supply in a sector that was already battling headwinds before the pandemic will likely lead to more uranium price upside in 2022." One analyst commenting on the uranium price forecast for 2022 suggested that the ore's price could head up to as high as $200, before a 50% retraction to the $100 mark. Another analyst has a more conservative estimate of $70 per pound. The 12-month uranium price forecast at Trading Economics is estimated to reach a value of $66.17. Uranium could continue its bullish run, according to Mining.com, partially due to an aggressive buying spree by the Sprott Physical Uranium Trust, which increased its holdings by 10% throughout February 2022 alone." Active mining companies in the markets this week include Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC), FISSION URANIUM CORP. (OTCQX: FCUUF) (TSX: FCU), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Uranium Energy Corp (NYSE: UEC), Ur-Energy Inc. (NYSE: URG) (TSX:URE).
It continued: "Despite a steadily increasing demand for uranium, supply could fall by 15% in 2025, according to the Financial Times, owing to a lack of investment in new mines. This disequilibrium could lead to an inflated price. However, as reported by Markets Insider, Morgan Stanley "is not yet convinced" that the uranium price forecast can sustain the momentum is has recently seen, making the uranium price forecast for 2025 unclear. Based on the costs of uranium deposits exploitation, Kryzia and Gawlik's research estimated a value of $97.30 for 2025, heading up to $107.70 in 2030."
Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC) BREAKING NEWS: Traction Uranium Expands Technical Research Team and Commences Summer Follow Up Program to Examine Radiation-Induced Quartz Degradation with Hearty Bay Core Samples - Traction Uranium Corp. (the "Company" or "Traction"), a mineral exploration issuer focusing on the development of discovery prospects in Canada, including its two flagship uranium projects in the world-renowned Athabasca Region, is pleased to welcome Ayetullah Tunc and Reza Deevsalar to Traction's research team under the guidance of Dr. Yuanming Pan (Technical Advisor to Traction see June 7, 2022 News Release) and commencement of the summer follow up program utilizing Dr. Yuanming Pan's innovative uranium vectoring technique he pioneered (see Traction July 6th, 2022 News Release).
Ayetullah Tunc is an M.Sc. student under the supervision of Dr. Yuanming Pan in Geological Sciences at the University of Saskatchewan. He is a dedicated exploration geologist and geologic mapper with a strong focus on unconformity-related uranium deposits in the Canadian Athabasca Basin, and phosphate-hosted uranium and thorium deposits, Turkey. Ayetullah's research focuses on using synchrotron X-ray techniques (XANES-XRF) and Electron Paramagnetic Resonance (EPR) for investigating ore systems with applications in mineral exploration. Ayetullah has performed on-site monitoring of well drilling operations along with surveying and mapping the site layout along with the geologic features associated with uranium mineralization as a field and well-site geologist for the General Directorate of Mineral Research and Exploration, Turkey (2018-2019).
Reza Deevsalar earned his Ph.D degree in petrology and geochemistry of magmatic systems from the Tarbiat Modares University, Tehran, Iran in 2015. In addition to his academic activities in multiple fields, including petrology, geochemistry and isotope geochemistry of magmatic systems, gemology, and magmatic-geothermal systems, Reza has contributed to several mineral exploration programs across Iran (mainly on gold, copper, iron deposits, and associated ore minerals), as a field and exploration geologist from 2009-2017. The most interesting part of geology research to Reza is the application of state-of-the-art analytical techniques and innovative approaches in the production of new data to consolidate and support the underground and surficial geological datasets in the creation of effective mineral prospecting and exploration models. After 4.5 years of doing research in the fields of geochemistry, radiogenic isotopes, and geochronology (Sep 2017 - Mar 2021) at the University of the Ryukyus (Okinawa, Japan), Reza started working on synchrotron-based research projects and EPR-CL-assisted U-exploration with Dr. Yuanming Pan's research team at the UofS.
Lester Esteban, Chief Executive Officer, stated "We are pleased to welcome Dr. Yuanming Pan's research team to our group and are excited to integrate both Ayetullah and Reza into our summer follow up programs at both Hearty Bay and Lazy Edwards. Ayetullah and Reza will be joining Fission 3.0's team in mobilizing to Fond Du Lac this week to commence the summer follow up program executing Dr. Yuanming Pan's vectoring technique by systematically sampling drill cores from the Hearty Bay drill program we completed in April. Results from examining quartz degradation will allow our team to refine drill targets and improve accuracy by focusing our efforts in the right areas, therefore maximizing dollars in the ground for our investors." CONTINUED… Read this full press release and more news for Traction Uranium at: https://www.financialnewsmedia.com/news-trac/
Other recent developments in the mining industry of note include:
FISSION URANIUM CORP. (OTCQX: FCUUF) (TSX: FCU) recently announced that it has entered into an engagement and communication agreement (the "Agreement") with the Buffalo River Dene Nation ("BRDN"). Fission's PLS project (the "Project") in the southwest Athabasca Basin region is within the BRDN's Ancestral Lands. Fission commenced an Environmental Assessment in December 2021 and is currently advancing through a Feasibility Study. The company intends to facilitate a comprehensive impact assessment of the project.
Fission wishes to build relationships and engage with Indigenous and local communities and to facilitate their involvement in the assessment of the project and its development. The Agreement formalizes a process for Fission and BRDN to meaningfully engage in respect of the PLS Project, and strengthens the positive, cooperative working relationship that has been established.
Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), the leading uranium producer in the United States, recently announced the results of the election of directors at its annual meeting of shareholders (the "Meeting") held virtually on May 25, 2022.
The ten (10) nominees proposed by management for election as directors were elected by the shareholders of the Company, through a combination of votes by proxy and electronic poll. About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. Energy Fuels also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up commercial-scale production of rare earth element ("REE") carbonate. Its corporate offices are in Lakewood, Colorado, near Denver, and all its assets and employees are in the United States. Energy Fuels holds three of America's key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery ("ISR") Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to recycle alternate feed materials from third parties, to produce vanadium when market conditions warrant, and to produce REE carbonate from various uranium-bearing ores. Energy Fuels is also evaluating the potential to recover medical isotopes for use in targeted alpha therapy cancer treatments.
Uranium Energy Corp (NYSE: UEC) recently announced that it has filed a Technical Report Summary ("TRS") on EDGAR, disclosing mineral resources for the Company's Anderson Project in Arizona (the "Project").
As a U.S. domestic and domiciled company, UEC is now reporting all mineral resources in accordance with Item 1302 of Regulation S-K ("S-K 1300"); S-K 1300 was adopted by the Securities and Exchange Commission ("SEC") to modernize mineral property disclosure requirements for mining registrants and to align U.S. disclosure requirements more closely for mineral properties with current industry and global regulatory standards; The mineral resource estimates set forth in this TRS have not previously been reported under the S-K 1300 format; and The Anderson Project is the largest uranium deposit in the State of Arizonaand ranks among the largest U.S. deposits in states that support uranium mining.
Ur-Energy Inc. (NYSE American: URG) (TSX: URE) has recently filed the Company's Form 10-Q for the quarter ended March 31, 2022, with the U.S. Securities and Exchange Commission at www.sec.gov/edgar.shtml and with Canadian securities authorities at www.sedar.com.
Ur-Energy CEO, John Cash said, "The first quarter of 2022 has been an exciting time for our industry with the long-term and spot uranium prices climbing dramatically in response to a growing recognition of nuclear energy's role in decarbonization, as evidenced by an increasing presence in the industry by financial players. Additionally, threats to the supply of uranium due to geopolitical uncertainty are beginning to overshadow the market. In response to rising uranium prices, and possible supply chain disruptions, we have continued and expanded our drilling and construction program to better position us to quickly ramp up low-cost production from our fully permitted Lost Creek Project when the market improves.
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